Are the Bears Closing in on Telecom Stocks?

How the Stock Market Fall Has Impacted Sprint Stock

By Andrew Smith
|
Feb 14, 2018 1:39 pm EST

Sprint stock down over 1.3%

Sprint (S) stock was trading at $5.30 by the end of February 9, 2018, which represents a decline of ~1.3% from its closing price on January 26. Sprint is now trading ~7.9% above its 52-week low of $4.91 and ~43.9% below its 52-week high of $9.44.

This telecom company’s stock price has fallen ~1.1% in the trailing-five-day period as of February 9. Below, we’ll discuss what this means.

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Sprint’s recent price fall has meant that it’s now trading below its moving averages. The stock is trading ~15.2% below its 100-day moving average of $6.25, ~4.8% below its 50-day moving average of $5.57, and ~0.9% below its 20-day moving average of $5.35.

As of February 9, 2018, Sprint has an MACD (moving average convergence divergence) of -0.12. By comparison, AT&T’s MACD is -0.06, while Verizon’s is 0.08, and T-Mobile’s is -0.16. Remember, a negative MACD figure suggests that a stock is in downward trading trend, while a positive MACD number suggests an upward trading trend.

Sprint trading at a premium of 6% to median target estimates

Sprint released its fiscal 3Q17 (quarter ending December 2017) financial results on February 2, 2018. Sprint added approximately 256,000 net postpaid customers in fiscal 3Q17, including 184,000 postpaid phone customer net additions during the same quarter. The company also added 63,000 prepaid customers in fiscal 3Q17.